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In today's blog we will discuss a different type of broker called a discount broker. A discount broker is an agent or broker who can help you in the home buying process, but they are different from your traditional agent. We'll discuss what makes a discount broker different and whether you, as a home buyer, should use one when buying a home.
A discount broker is a bit different than the typical agent that a home buyer deals with. When a home buyer works with a typical agent (let's say a buyer's broker) they expect the broker to help them in the home buying process the entire way. This includes arranging the showings and making an offer for a property. In return, the broker receives a certain percentage of the selling price as commission. The way a discount broker works is a bit different from this. When you hire a discount broker they give you, the home buyer, listings from a multiple listing service which they have access to. From there, it is the home buyer's job to do all the work from looking at each property, inspecting the property, and even coming up with a counter offer for a property.
You may be wondering why you would even hire a discount broker if you are essentially doing all the work. There are a few reasons for this. The first is that the discount broker splits the commission they make with the home buyer. This can be very beneficial for anyone who is on a tight budget and wants to save as much as they can. Another reason why it is beneficial to use a discount broker is because a broker has access to the MLS, the multiple listings service. This has all the local property listings along with important information about each one. Even though some information exists on the internet on property listings most of it is incomplete, incorrect, or just outdated, unlike the MLS Listing website. You can view an example of MLS listings here: Big Spring MLS listings
When it comes down to the question of whether you should use a discount broker or not it all boils down to experience and budget. A first time home buyer should probably avoid a discount broker because they are not familiar with much of the home buying process and its protocols. A more experienced home buyer could benefit if they know enough information and want to save in the process.
Work Cited: Glink, Ilyce R. Questions Every First-Time Home Buyer Should Ask. New York: Three Rivers Press, 2005.
NEXT BLOG: Be sure to check back with us for the next blog topic: "How much should my broker know about the amount I can afford to spend on a house?"
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